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Monday, October 21, 2019

Impact of Renewable Energy on Economic Growth

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Renewable energy is the basis of resupplied resources, such as, wind, sunlight or geothermal energy. On the other hand, fossil fuels, such as, oil, coal and natural gas are the non-renewable energies that wouldn’t get re-used for its chemical toxicity. In addition, implementing renewable energy put a strong effect on a country's economic condition. In the later section of the article, you will find out about the impact of renewable energy on economic growth.
Renewable energy is comparatively cheaper than most of the energy options out there. It comes with economic and societal benefits due to many countries have been investing money on renewable energy and the truth is, it mostly beneficial. Many social and economic benefits result from the use of solar energy at most. Find out the impact of renewable energy in different circumstances in the later part of this article.

Impact of renewable energy on economic growth
There are different factors that work behind economic growth on renewable energy. Investing in renewable energy mainly creates labor intensity and creates more job sectors with greater earning possibility and lets you manage higher output. As you manage to work on the indigenous resources, you can keep your money at home. Below, find out the impact on economic growth.
Affordable Energy Prices
Renewable energy has been providing affordable electricity and it helps reducing energy prices for the betterment of the future. Renewable facilities need to get built by investment and you can operate it at affordable prices with low cost. Later, gradually the prices become stable over the course of time. For example, installing Solar and electricity from wind dropped below 66 to 70 percent between 2010 and 2017.
Reduction of Fossil Energy Import
Importing fossil energy has been significantly reduced over the past 10-12 years. This reduction affects several criteria. For example, Vietnam's oil production gets declined by the authority from 2005 due to the rapid growth of renewable energies.
  • ·         Foreign exchange have been saved
  • ·         Relying on foreign energy supply has reduced
  • ·         Price volatility gets in control
  • ·         Electrical energy supply has spread in rural areas
  • ·         Economic stability has grown in remote areas
Creates investment opportunities
Renewable energy supply depends on various strategies, projects and planning. It creates the project on a small or medium scale. See the points below how it helps to grow the projects
  • ·Planning, making and operating is easy to handle
  • ·If you have experience, you can set up the project at ease
  • ·Local investment opportunities get wide open
Increased economic activities
Renewable energy helps to get a good place in locals for construction and engineering. It also helps economic diversification in rural areas where the money stays in the same territory. See the list below to know more about it.
  • ·         It creates new jobs for professional and non-professional workers
  • ·         Helps to grow tax revenue and purchasing power and increase income
  • ·         It makes agriculture more active
  • ·         The local economic condition gets improved
Greater effect on Electricity consumers
Electricity is the main resource of renewable energy. By renewable energy, electricity consumers get positive effects on having grid access and without the grid access. Grid access is the installation and transmission with distribution procedure of electricity.
  • ·         Grid access enables to have chances for business by electricity supply
  • ·         Also, it helps to get cheaper electricity than oil or diesel generated electricity
  • ·         With no grid access, locals invest in high voltage transmission lines
  • ·         Network stability gets enhanced
  • ·         Facilitate energy supply extension
Increased biomass
Renewable energy creates an opportunity to produce a reduction of wastages by increasing biomass. If biomass gets used from waste you can always get the chance of reduced waste treatment.
  • ·         Biomass reduce environmental risks and ground water pollution
  • ·         It helps reduce the bad smell in air, health and sanitation problems
Increasing Global GDP
Renewables and energy efficiency measurement offer macroeconomic benefits. By investing in renewable energy, economic stability gets stimulated. In a statistics on German G20 presidency, IRENA observes the reduction of global carbon di-oxide emissions where Paris Agreement would boost GDP by 0.8% in 2050. That means in the amount of money it is roughly 19 trillion USD.

Social impacts of renewable energy
Renewable energy has a social impact on economic growth. It helps to grow locals welfare and create more job sectors with increasing service trade and investment and enhancement of public health development. Below, see the brief discussion with social impacts on economic growth.
Improves Welfare
Renewable energy maximizes social benefits according to incomes, health, education, employment and general human well-being. Welfare is a substitute to GDP where sustainability component is the requirement. Sustainability component is important due to the traditional views of welfare.
GDP offers only the views of factors stated as the socio-economic welfare. There are three types of component required for complete analysis of welfare improvement.
  • ·         Economic (Productive capital investment and consumption)
  • ·         Social (Improving human capital by health and education)
  • ·        Environmental (Consumption of materials by the depletion of natural resources)
Creating Job sector
Renewable energy has positive effects on job sectors.  Fossil fuel needs labor intensive job where mechanical things get involved. When it comes to renewable energy, you need solar panel and wind farms to install them with the help of technicians. Later, you need to call them again for maintenance. In 2016, there are 100,000 employees gets appointed to wind energy industries alone in the US.
Investment and Service Trade 
An increased rate of demand for service trade and investment goods and services, such as, solar panels, turbines, construction materials and engineering services get higher expectancy in all countries to step up the renewal energy adoption. There are additional opportunities lie in Investment and manufacturing where renewable energy gets larger positive effects by the enhanced rate of exports.
Public Health development
Renewable energy has a positive effect on human health. Non-renewable energy, such as, air, coal, gas plants always have a negative impact on public health. It creates various problems, such as, breathing problems, neurological damage, heart attacks, cancer, premature death and a lot of other serious issues.
Most of the negative effect comes from non-renewable energy. Air and water pollution is the main culprit for developing serious issues towards public health. On the other hand, wind, solar and hydroelectric systems generate electricity with zero air pollution emission and also they require no water to operate and hence, do not pollute water.

 The negative impact of renewable energy
Some greenhouse affected countries,such as; China has decided to go to renewable energy plants. Whether they use Hydro plants, wind, solar and bioenergy, there is always a risk of getting the negative impact of renewable energy. See the reasons below to know the impact.
Soil erosion
Sun is the main and primary source of renewable energy and the solar panel is getting used for getting benefit from this renewable energy. However, the adverse consequences of the solar panel are very much in effect.
  • ·         Using large area for solar panel
  • ·         Clearing and grading land can cause soil compaction
  • ·         Alteration in the drainage system
  • ·         Materials extracting process
  • ·         Materials with the exploration and manufacturing

Agricultural Waste
Biomass resources for producing electricity crops, forest products, agricultural waste and urban waste impacts on land use and global warming emissions. For instance, Animal and human waste used to power engines to reduce the carbon emission, but increases the harmful methane emission.
Poisonous Gases
Geothermal power plants contain poisonous gases, especially, when workers drill the holes in earth surface there is a chance of getting poisonous gases released from the earth’s surface. Also, there is a probability of getting earthquakes under extreme conditions.

Many countries have been trying to transform their energy systems into a stable and unique infrastructure. Other than some disadvantages, scaling up renewable energy increase incomes, create jobs and improves public health.
The above discussion proves the economic growth on renewable energy is still progressing and will get the acceptance by overcoming the negative impacts.

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